Mumbai-based fintech startup Cashcow has raised an undisclosed amount in seed funding from Astarc Ventures, according to an exclusive report by Inc42. Investors like Yes Bank chief Rana Kapoor’s daughters’ run Indian School of Management and Entrepreneurship (ISME) and Japan-based Valpro Capital participated in the funding round.
Founded by Gaurav Goyal, Mustafa Patanwala, Manish Aggarwal and Sarfraz Nawaz in 2017, the startup offers financial products like home loans, personal loans, credit cards as well as mortgage loans to customers at their doorstep. So far, Cashcow has disbursed 75,000 credit cards and loans worth $71.02 Mn (₹500 Cr).
The startup also operates a tech platform which connects a network of existing and upcoming direct selling agents. The startup helps customers by getting the product to them in the fastest time and also the agents to earn higher revenue by selling the products they earlier don’t have access to.
Enablers, a unit of ValPro, acted as an advisor to Cashcow throughout the deal. Cashcow will use the freshly raised capital to strengthen its technology platform and scale its operations by increasing distribution. The startup uses machine learning and artificial intelligence to qualify and allocate leads. The platform runs on the cloud.
Cashcow launched a mobile app for LIC agents, chartered accountants, etc, to pass on leads and track their progress with transparency. The borrower, on the other hand, gets a dedicated financial advisor who advised him to select from 60 lenders in the entire journey of the borrowing process.
India is a credit-starved economy and startups like Cashcow will help improve the penetration of financial products, said Salil Musale, MD of Astarc Ventures. The startup has uberised the financial distribution model to increase efficiencies and provides a lot more people with the opportunity to be part of the ecosystem and earn higher revenues.
According to financial services platform Fintech Global, global fintech investments increased steadily between 2014 and 2017 from $19.9 billion to $39.4 billion at a CAGR of 18.5%. This trend accelerated in the first half of 2018 when $41.7 billion was invested across 789 deals. In 2017, an amount of over $3.01 billion was invested in fintech startups, an increase of 281% from 2016. Further, 46% of the total funding of $3 billion in H1 2018 went to fintech and e-commerce alone.